Investors Buy Large Volume of GameStop Put Options (NYSE:GME)

GameStop Corp. (NYSE:GME) was the target of unusually large options trading on Tuesday. Investors acquired 82,514 put options on the stock. This represents an increase of 1,271% compared to the average daily volume of 6,018 put options.

In other GameStop news, Director Lizabeth Dunn acquired 5,000 shares of the company’s stock in a transaction that occurred on Friday, September 27th. The stock was acquired at an average cost of $5.38 per share, for a total transaction of $26,900.00. Following the transaction, the director now directly owns 32,969 shares in the company, valued at $177,373.22. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Carrie W. Teffner acquired 21,118 shares of the company’s stock in a transaction that occurred on Friday, September 20th. The shares were acquired at an average price of $4.73 per share, with a total value of $99,888.14. Following the completion of the transaction, the director now owns 55,469 shares in the company, valued at $262,368.37. The disclosure for this purchase can be found here. Over the last 90 days, insiders have purchased 36,268 shares of company stock valued at $175,886. 2.40% of the stock is owned by corporate insiders.

Hedge funds have recently modified their holdings of the company. Golden State Wealth Management LLC acquired a new stake in shares of GameStop in the third quarter valued at about $47,000. Bank of Montreal Can increased its stake in shares of GameStop by 274.9% in the second quarter. Bank of Montreal Can now owns 9,605 shares of the company’s stock valued at $52,000 after buying an additional 7,043 shares during the period. Edge Wealth Management LLC acquired a new stake in shares of GameStop in the third quarter valued at about $55,000. Handelsbanken Fonder AB acquired a new stake in shares of GameStop in the second quarter valued at about $65,000. Finally, OneAscent Financial Services LLC acquired a new stake in shares of GameStop in the second quarter valued at about $70,000.

GameStop stock opened at $6.43 on Thursday. The company has a current ratio of 1.37, a quick ratio of 0.59 and a debt-to-equity ratio of 1.16. The company has a market capitalization of $570.79 million, a PE ratio of 3.00 and a beta of 0.42. GameStop has a 12 month low of $3.15 and a 12 month high of $16.90. The stock has a 50-day moving average price of $5.10 and a two-hundred day moving average price of $5.90.

GameStop (NYSE:GME) last issued its quarterly earnings results on Tuesday, September 10th. The company reported ($0.32) earnings per share for the quarter, missing the consensus estimate of ($0.22) by ($0.10). The company had revenue of $1.29 billion during the quarter, compared to analyst estimates of $1.37 billion. GameStop had a negative net margin of 13.59% and a positive return on equity of 15.38%. During the same period in the previous year, the company posted $0.05 EPS. As a group, analysts predict that GameStop will post 1.11 earnings per share for the current fiscal year.

Several equities analysts have commented on the company. ValuEngine upgraded GameStop from a “sell” rating to a “hold” rating in a research report on Tuesday, September 10th. Wedbush dropped their target price on GameStop from $9.00 to $8.00 and set an “outperform” rating for the company in a research report on Wednesday, September 11th. Bank of America dropped their target price on GameStop from $4.00 to $2.50 and set an “underperform” rating for the company in a research report on Tuesday, August 20th. Loop Capital set a $4.00 target price on GameStop and gave the company a “hold” rating in a research report on Thursday, September 12th. Finally, Benchmark dropped their target price on GameStop from $5.00 to $3.00 and set a “sell” rating for the company in a research report on Wednesday, September 11th. They noted that the move was a valuation call. Four analysts have rated the stock with a sell rating, six have given a hold rating and one has issued a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus target price of $8.35.

About GameStop

GameStop Corp. operates as a multichannel video game and consumer electronics retailer in the United States, Canada, Australia, and Europe. The company sells new and pre-owned video game hardware; video game software; pre-owned and value video games; video game accessories, including controllers, gaming headsets, virtual reality products, memory cards, and other add-ons for use with video game hardware and software; and digital products, such as downloadable content, network points cards, prepaid digital and prepaid subscription cards, and digitally downloadable software, as well as collectible products.

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